Paytm mulls $3 billion IPO in what would be India’s largest public market debut

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Paytm mulls $3 billion IPO in what would be India’s largest public market debut

Paytm, the Noida, Uttar Pradesh-based Indian e-commerce payment processor and fintech giant, has been brewing off an option to raise more than a whopping $3 billion (₹218 billion) in an IPO (Initial Public Offering) later this year, which in effect would mark up the world’s second-most populous country’s largest public market debut ever, a Bloomberg News report published in morning European morning trading hours on Thursday had unveiled citing unnamed sources.

Aside from that, the Bloomberg News report had quoted one of the sources familiar with the subject-matter as saying that the 12-year-old fintech start-up backed by heavy-weight investors such as Warren Buffet’s Berkshire Hathaway, Japanese tech investment conglomerate SoftBank Group Corp., alongside China’s Alibaba-backed Ant Group Co., had been working out a public market floatation as early as November this year that could value India’s leading digital payment processor between $25 billion to $30 billion.

On top of that, the management board of Paytm parent One97 Communications Ltd., had been expected to meet on Friday to formally approve the public market debut, added the source who wished to remain anonymous given the scale of sensitive nature of the issue.

Paytm targets $25-$30 billion valuation in November public market debut

More importantly, if a Paytm IPO would raise more than $3 billion or ₹218 billion in November as slated, it would brand the country’s largest IPO ever as beforementioned, surpassing an initial offering of $2.07 billion (₹150 billion) which Coal India Ltd had shelved back in the 2010s.

Paytm, in tandem, had shortlisted leading US lenders likes of Morgan Stanley, Citigroup Inc alongside JPMorgan Chase & Co to oversee its IPO proceedings, as the world’s fifth-largest economy’s leading financial technology firm would more likely to roll out its initial offerings’ process on late-June or early-July, said the sources.